A well structured company from the get-go will allow you to plan for the road ahead. Browse through our information, and don’t forget to take a look at our resource page for business related articles. Please visit our link on income splitting to learn the advantages of incorporating.
Anurag Gupta Professional Corporation will advice you from both a legal and tax perspective. We are dedicated to offer value added incorporation legal services. We understand the needs of clients who are starting out and offer various incorporation packages. There is no one size that fits all, and one should consider your needs and circumstances. One entity may require investors in the future and a simple one share class incorporated company may not be sufficient. If you have a family, income splitting with family members can be achieved with tax planning incorporations. Each situation requires a different solution and we will advice you of our fees after determining the type of incorporation that suits your needs.
Incorporation for Business Owners other than Professionals
The information provided herein is not for doctors, dentists, lawyers, accountants, veterinarians and other professionals who require a professional corporation. For more information on professional corporations, please visit our professional page by clicking here.
While many people self-incorporate or delegate the incorporation duties to an accountant, clients should understand that incorporating a company is a legal process, one that should not be taken lightly. A lawyer’s role is to counsel and advice the new business owner with the incorporation process. An improperly incorporated company can disentitle business owners or shareholders to tax benefits or can be subject to potential litigation, including oppression remedy.
A simple one share class will not provide you with any tax benefits, including income splitting. Anurag Gupta Professional Corporation will advice you on how to plan ahead. The future cost of reorganizing a company can run into thousands of dollars. Plan for the long road ahead, not the short term.
Requirement to Maintain Books
Both the Federal and Ontario statutes require that a corporation be properly “organized”. This means that a corporation must have articles, by-laws, shareholder agreements, minutes of meetings and resolutions of shareholders and directors, shareholders register, directors records and other corporate and accounting records. These documents and others are normally recorded into the company’s Minute Book.
Preparing and ensuring that all of the company’s records are kept up to date is very important. For example, shareholders come and go, and not having a proper shareholders’ register can potentially create legal problems or obstacles from moving the company forward. In addition, if you are a shareholder, not the actual business owner, and you believe you are entitled to dividends, profits or were oppressed, you would need to demonstrate that you were an actual shareholder of the company. This is normally in the form of a shareholder certificate or resolutions authorizing the share capital. A shareholder has a legal right to access the company’s records. If you are becoming a shareholder of a company, you should demand a share certificate from the company’s directors.